Definition of insurance contributions and risks
Premiums are a form of risk control that is carried out by transferring/transferring risk from one party to another, in this case an insurance company.
What is the meaning of the origin of the insurance premium?
According to Article 246 of the Kuhd, it is stated that
"insurance or coverage means an agreement whereby an insurer binds himself
to an insured person, by obtaining a premium, to compensate him for a damage or
loss of necessary profits which he may suffer due to an uncertain event."
.
Another definition of premium is a transfer of risk from the
first party to another party. In the delegation, the rules and regulations
apply and the universal principles and teachings that are adopted by the first
party and the other party apply.
From an economic point of view, insurance means a collection
of business costs that can be used to cover or compensate people who suffer
losses.
What are the benefits of insurance contributions?
Apart from being a form of risk control (financially),
insurance also has various benefits which are classified into: main function,
secondary function and additional function.
The primary function of insurance is to transfer risk, raise
capital and balance premiums. The secondary function of premiums is to
stimulate business growth, prevent losses, control losses, have social benefits
and become savings. Meanwhile, the additional function of insurance means being
a capital investment and invisible earnings.
What is the meaning of originating risk?
Article 246 of the Code of Ethics states that
"insurance contributions or insurance are an agreement whereby an insurer
binds himself to an insured, by accepting an insurance contribution, to
compensate him for a damage or loss of necessary profits which he may suffer due
to an unforeseen event. of course".
Another definition of insurance contributions is a transfer
of risk from the first party to another party. In the delegation, the rules and
regulations apply and the universal principles and teachings adhered to by the
first party and the other party.
From an economic perspective, insurance means a collection
of business costs that can be used to cover or compensate people who have
suffered losses.
What is risk?
The definition of 'risk' in insurance contributions is
"uncertainty about the occurrence of an event that can result in
economical losses".
What are the forms of risk?
The forms of risk include pure risk, speculative risk,
particular risk and fundamental risk.
Pure risk is a risk that results in only two kinds: loss or break
even, for example theft, accident or fire.
Speculative risk is a risk that results in three types:
loss, profit or break even, for example gambling. Particular risks are risks
that originate from individuals and local impacts, for example plane crashes,
car crashes and shipwrecks.
While the basic risk is a risk that does not come from
individuals and the impact is wide, such as hurricanes, earthquakes and floods.
Can all risks be insured?
Not all risks can be insured. The risks that can be insured
are: risk that can be measured using money, homogeneous risk (the same risk and
quite a lot is guaranteed by the premium), pure risk (this risk is not
profitable), particular risk (risk comes from individual origin), risk that
occurs suddenly (accidental), insurable interest (the insured has an interest
in the object of coverage) and risks that do not conflict with the rules